The International Data Corp. (IDC) said that the decline in the smartphone market in the Philippines has slowed down to a 2.1% year-over-year (YoY) contraction and 20.0% quarter-over-quarter (QoQ) growth.
This decline is attributed to several factors, including the rising prices of goods and a general sense of economic uncertainty. As a result, consumers have become increasingly cautious about their spending, primarily focusing on essential purchases.
“Though inflation in the Philippines is slowing down and on the mend, consumer appetite for spending remained cautious in the face of higher prices of goods and economic uncertainty, resulting in eight consecutive quarters of annual contraction,” said Angela Medez, senior market analyst, Client Devices at IDC Philippines.
During the second quarter of 2023, the top position in smartphone shipments was secured by Transsion, with sub brands Tecno and Infinix. They accounted for 38% of the total shipments. Tecno, a sub-brand under Transmission, grew by 145% QoQ and a staggering 237% YoY increase in shipments. This growth can be attributed to an aggressive marketing campaign, which resulted in triple-digit growth for the ultra-low-end (<US$100) segment.
“With the market anticipated to remain subdued for the rest of the year, IDC expects more competition and growth in the lower-price segments as vendors focus on improving sales,” Medez added.